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Pluristem Initiation BUY - $8 Target

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EQUITY RESEARCH INITIATIONBiotechnology Initiation BuyJuly 24, 2012Closing Price 7/24/2012 $3.18 Pluristem Therapeutics Inc.12-Month Target Price:52-Week Range: $8.00 $1.98-$3.85 (PSTI – NASDAQ – $3.18)Market Cap (M): $139 Pluristem: A Unique Allogeneic ProductShares O/S (M): 43,713Float (M): 39,342  We are initiating coverage of Pluristem Therapeutics Inc.Avg. Vol. (000) 223 with a Buy rating and $8.00 price target. We believe thatCash & Cash Equivilents (M) Q1-2012 38,629 PSTI is a well-positioned company with a unique product and aDebt (M) $0 strong SWOT (strengths, weaknesses, opportunities, and threats)Dividend/Yield: $0.00/0.00% product analysis that we expect to progress solidly over the nextRisk Profile: Speculative year as a global phase II trial begins in intermittent claudicationRevenues 2017 2018 (IC).CLI $181 $347  United Therapeutics has opted in. In June 2011, Pluristem signed a license with United Therapeutics (UTHR, $49.87, Not Rated) for the development of PLX cells in pulmonary disorders. FYE: December GAAP EPS P/E The license agreement initiated at $7M and includes an 2011A $ (0.35) nm additional $37.5M in regulatory milestones, as well as other 2012E $ (0.31) nm attractive elements. We believe this could be one of many 2013E $ (0.42) nm therapeutically focused deals to come. 2014E $ (0.43) nm 2015E $ (0.31) nm  Clinical programs are getting ready to begin. In July, 2016E $ 0.04 71.4 Pluristem announced (in anticipation of the start of the phase II 2017E $ 1.66 1.9 study in IC) that the company has selected CPC Clinical 2018E $ 3.30 1.0 Research for trial support services related to enrolling and sustaining clinical sites. The IC study population will be comprised of ~150 patients (Fontaine class IIb/Rutherford category 2-3) in a dose-escalation, placebo-controlled, double- blinded study.  Great manufacturing system. Pluristem utilizes Placental eXpanded (PLX cells) in the treatment of a variety of inflammatory and ischemic conditions. The company has developed a manufacturing system which utilizes a bioreactor that allows the growth of cells in a 3D culturing methodology and the process is designed to simulate a range of ischemic conditions which allows the product to be tailored for specific indications (such as PAD, CLI, ARS, PAH, and even orthopedics). The system itself is designed to be very efficient translating into high manufacturing margins.  Model assumptions. We assume Pluristem enters the criticalSource: Edgar as of 07/24/2012 limb ischemia (CLI) market in 2016. We are not assuming anyJason Kolbert (212) 895-3516 other revenues as part of our model; however, we believe that itjkolbert@maximgrp.com is extremely likely that Pluristem will advance multiple programs into the clinic later this year and next.  Compelling valuation. We provide three valuation metrics – FCF, discounted EPS, and sum of the parts – and are modeling PSTI out to 2018. We only assume success in CLI and have not included milestones or deal revenues related to United Therapeutics or other new partners. This derives a 2018 EPS number of $3.30, which we discount at 30% and equallyweight the three metrics to derive an $8.00 price target. Maxim Group LLC 405 Lexington Avenue New York, NY 10174 – www.maximgrp.com SEE PAGES 24 - 26 FOR IMPORTANT DISCLOSURES AND DISCLAIMERS

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Pluristem Therapeutics (PSTI) CORPORATE PROFILEPluristem Therapeutics (PSTI)MATAM Advanced Technology Park #20Haifa 31905 IsraelPhone: (972) 74-710+7171Web site: www.pluristem.com Investment Risks:Senior Management:Zami Aberman, President and CEO. Mr. Aberman,  Clinical trial risk“Zami,” joined Pluristem in September 2005 and  Manufacturing and product qualitychanged the company’s strategy towards cellular  SWOT Risk. (strengths,therapeutics. Mr. Aberman’s vision to use the maternal weaknesses, opportunities, and threats) as Pluristem is likely to besection of the placenta (decidua) as a source for cell the second cell-based product in thetherapy, combined with Pluristem’s 3D culturing CLI marketplace.technology, led to the development of company-unique  The potential need to raiseproducts. Mr. Aberman brings to Pluristem a keen sense additional capitalof business and entrepreneurship.Yaky Yanay, Chief Financial Officer, Prior to joining (PLEASE SEE PAGES 19, 23-25 FOR APluristem, Mr. Yanay was the Chief Financial Officer of MORE DETAILED OUTLINE OF OURElbit Vision Systems Ltd., before which he served as “INVESTMENT RISKS”)manager of audit groups of the technology sector at Ernst& Young Israel. He holds a bachelors degree with Institutional Ownership: 20%honors in business administration and accounting and is a Inside Ownership: 14%Certified Public Accountant in Israel. Shares Short: 0.5MCompany Background. Pluristem Therapeutics Inc. Balance Sheet Summary: $MM(PSTI) is a leading developer of placenta-based cell (As of Mar 31, 2012)therapies. The companys patented PLX (PLacental Cash & Restricted Cash: $40eXpanded) cells drug delivery platform releases a Long-Term Debt: (M) $0.0cocktail of therapeutic proteins in response to a variety of Quarterly Burn Rate ($3-4)local and systemic inflammatory diseases. PLX cells aregrown using the company’s proprietary 3D micro- Analysts Following the Co.: 4environmental technology and are an off-the-shelf (Excluding Maxim Group)product that require no tissue matching or immune-suppression treatment prior to administration. The PLX-PAD comprehensive clinical development plan has beenrecognized by both the EMA and FDA, targeting a sub-population of 20-million patients of the peripheral arterydisease (PAD) market.Data from two Phase I clinical trials indicate thatPluristem’s first PLX product, PLX-PAD, is safe andpotentially effective for the treatment of end-stage PAD.Pluristem’s pre-clinical animal models havedemonstrated that PLX cells are also potentially effectivein nerve pain and muscle damage when administeredlocally and in inflammatory bowel disease, MS, andstroke when administered systemically. Pluristem has astrong patent portfolio, company-owned GMP certifiedmanufacturing and research facilities, strategicrelationships with major research institutions, and aseasoned management team.Maxim Group LLC 2

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Pluristem Therapeutics, Inc. (PSTI)Financials. In February 2011, Pluristem raised approximately $40 million from a public offering.In June 2011, the company entered into an exclusive license agreement with United Therapeuticsfor the use of our PLX cells to develop and commercialize a cell-based product for the treatmentof PAH. We estimate that the company has approximately $40 million in cash and cash assetsand will spend approximately $15 million in 2012.The license agreement allows United exclusive worldwide licensing rights for the developmentand commercialization of PLX cell-based product to treat PAH. Under the terms of theagreement, Pluristem was paid $7 million upfront (in August 2011), and there may be up to $37.5million in regulatory milestones along with reimbursement of up to $10 million for certainexpenses related to the possible establishment of a manufacturing facility in North America. Inaddition, United will cover all development costs. Following commercialization of the product,United will pay a royalty and agree to purchase commercial supplies of the developed productfrom Pluristem at a specified margin over cost.Intellectual property (IP). In 2007, Pluristem purchased patents covering the PluriX BioreactorSystem from the “Technion-Israel Institute of Technology” and the “Weizmann Institute ofScience,” replacing an earlier license – U.S. Patent 6,911,201, issued 6/28/05 – “Method ofproducing undifferentiated hematopoietic stem cells using a stationary phase plug-flowbioreactor.” The company currently has a total of 20 granted patents with 76 applicationspending for production, process, and therapeutic uses. The expiration dates of these patents, basedon filing dates, range from 2019 to 2030. We note that Pluristem can protect its product based onboth IP and several levels of trade secrets and know-how.Pluristem’s Patent Portfolio:  A propriety expansion method for 3D Stromal Cells  Composition of matter claims on the cells  The therapeutic use of PLX cells for the treatment of a large variety of medical conditions  Selection criteria for determination of cells suitable for administration.Bull case. Bulls argue that Pluristem is a fast follower to a company like Aastrom Biosciences(ASTM-$2.00-Buy Rated), which is now pursuing a pivotal program in critical limb ischemia.The differences between the companies are significant in that Pluristem utilizes an allogeneicapproach with autologous-like properties. Immuno-privileged cells are derived from the uniqueenvironment of the placenta. Cell vitality becomes a strategic advantage and translates in terms ofpotency. In fact, there is a wealth of antidotal information that suggests young cells (placental)are more potent and vibrant than autologous cells from older patients with co-morbidities. Giventhe positive results that others in the space have seen (Aastrom), we believe that PLX cells shoulddo just as well – if not better. The company also has excellent pre-clinical and Phase I clinicaldata that suggest PLX cells down-regulate local inflammation while creating neovascularizationof local tissue. We do not believe that cellular based integration of the host graft is required toimpact the disease (CLI), and that it is these localized paracrine mechanisms that are responsiblefor the efficacy seen. Value creation tends to occur in small capitalized biotechnology companiesonce proof of concept is established. Early proof of concept (POC) from the current Phase Isafety studies suggests the PLX cells are active. The next step is a larger Phase II/III study, whichcould begin in 2H13 with POC data in early 2015. Given the unmet medical need in CLI and thevalue of an off-the-shelf, allogeneic therapy, we believe Pluristem could see a significant rise invaluation on positive Phase II interim data. The Phase II study for IC should start in 3Q12, withPOC data in early 2014.Maxim Group LLC 4

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Pluristem Therapeutics, Inc. (PSTI)Bear case. Bears will point out that Pluristem is an early-stage stem cell company with nothingbut Phase I safety data. It is unknown if the PLX cells will show efficacy in any indication, muchless critical limb ischemia, due to its high hurdles. Proof of concept data is still two years away.Bears likely also have concerns about the company’s small size and its ability to run Global (EUand U.S.) programs. Given the prior failures [such as Sanofi-Aventis’ (SNA, $66.90, NR)AMARIS trial in CLI] and the ambiguous results from Aastrom’s Phase II study, CLI hurdlesremain high. Phase II trials are not typically powered high enough to draw statistically validconclusions that can predict results in the larger and highly variable CLI population.Our take. We believe that Pluristem is on the right track. We see the SWOT (strengths,weaknesses, opportunities, and threats) as quite favorable for the company. We believe the 3Dbio-reactor is an exciting technology, as well as the cell source (maternal, placental derived).Clinically, the stock needs time, but we believe that fundamental valuation is low given thepotential across multiple indications. We also believe that Pluristem will benefit as othercompanies’ trials advance, creating a surrogate proof of concept for PSTI. INVESTMENT SUMMARY AND CONCLUSION We are initiating coverage of Pluristem Pluristem: The SWOT Looks Good Therapeutics (PSTI) with a Buy Rating and a 12-month target price of $8.00 PLURISTEM’S MANUFACTURING PROCESSExhibit 3.Schematic drawing of placenta as source of adherent stromal cells (ASC)Source: www.edward.org/.../ graphics/images/es/17010.jpgMaxim Group LLC 5

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Pluristem Therapeutics, Inc. (PSTI)Pluristem develops adherent stromal cells (ASC). The cells are (1) extracted from humanplacentas received from schedule caesarean sections following childbirth. ASCs are stromal cellsthat have surface markers resembling mesenchymal stem cells. The stem cells are obtained fromthe maternal side of the placenta, rather than the fetal side, as the company believes the cells onthe maternal side have greater immunomodulatory capability. Placentas are (2) processed,ensuring lack of contamination and removal of any immune cells, and expanded in two-dimensional technology. The cells are then (3) cultured on a polystyrene fibrous matrix in a three-dimensional reactor called the PluriX Bioreactor System, which replicates the naturalenvironment. This proprietary expansion method permits highly controlled expansion of largequantities of cells. The expanded cells, referred to as Placental eXpanded cells or PLX, arerecovered from the culture, packaged, and (4) cryopreserved ready-to-use in liquid nitrogen forlater use. The entire process takes about eight weeks, yielding sufficient cells from one placentato treat about 10,000 patients (each dose is ~300 million cells). Among the differentiating factorsfor Pluristem’s technology are the unique source of cells and the method of manufacturing.Exhibit 4. PLX Cells’ Manufacturing ProcessThe cells are extracted from the maternal side of the placenta and ultimately grown in a 3Dbioreactor, designed to create a three-dimensional environment. 1 2 2D 3D 3 4Like Athersys (ATHX-$1.50-Buy Rated), Osiris (OSIR, $9.33, NR), and Mesoblast (MBLTY-,$29.95, Buy), Pluristem uses allogeneic cells that can be expanded in culture and used off-the-shelf without tissue matching or immunosuppression. We believe Pluristem’s three-dimensionalbioreactor manufacturing technology is one of the company’s key differentiators, allowing it toexpand cells more efficiently under a fully controlled, more natural environment (3D versus 2D),designed to be like the body itself. No external growth factors are used, resulting in a natural cellgrowth cycle. The process is designed to keep the number of cell doublings below 25, keeping thecells young. The process is protected by a U.S. patent (6,911,201). The company currently has atotal of 20 granted patents and about 80 applications pending for production, process, andtherapeutic uses. The system capacity is significant [a 75-liter bioreactor is equivalent to 20,000tissue (2D) culture flasks]. The 3D bioreactor technology enables the change of the cells’secretion to include different products from the placenta and control the secretion of anti-inflammatory and pro-angiogenic cytokines dedicated to different indications. The companyemploys a variety of QC measures that ensure consistency between batches across placentas.Maxim Group LLC 6

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Pluristem Therapeutics, Inc. (PSTI)Exhibit 5. Adherent Stromal CellsLeft: Microscopic visualization (x40) of placenta-derived ASCs at the 2D growth phase; Center:Placenta-derived ASCs homing on a carrier in the 3D growth phase (electronic microscope); andRight: The carrierSource: PluristemIs the PLX Product Cost Effective? Pluristem has stated that, upon scale up, its cost of goods(manufacturing only) will allow pharmaceutical margins to the product. Average dosing isexpected to be close to 300 million cells. Given the high efficiency of the 3D bioreactor, it’slikely that one placenta could result in enough products for 10,000 patients.Why PLX Cells? PLX cells are non-immunogenic; hence, they can be used for transplantwithout donor matching. In addition, they appear to possess immunosuppressive properties andcan down-regulate production of pro-inflammatory cytokines and prevent proliferation of pro-inflammatory cells (refer to Exhibit 9). In a mixed lymphocyte reaction (MLR) test of Pluristem’splacental stem cells with blood from any donor, the stem cells neither attack nor get attacked bydonor cells. This implies that transplanted PLX cells are unlikely to cause graft vs. host disease orbe rejected. In fact, experimental data has demonstrated that, following administration, cellsresponded to the local environment by secreting anti-inflammatory and pro-angiogenic cytokinesthat down-regulate inflammatory markers, resulting in the formation of new capillaries. The PLXcells have a life expectancy of just a few weeks and are then cleared from the body.Mesenchymal Cells (MSC) General Characteristics: Phenotype. Positive markers: CD105,CD73, CD90, and CD29 are highly expressed by PLX cells. Negative markers includehematopoietic markers (CD45, CD34, CD19, CD14, and HLA-DR), and the endothelial markerCD31. MHC class I: Intermediate levels of HLA major histocompatiility complex molecules.HLA class II antigens: Do not express HLA class II antigens on the cell surface. Do not expressco-stimulatory molecules, which are typically expressed by antigen presenting cells (APCs) suchas CD80, CD86, and CD40.Maxim Group LLC 7

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Pluristem Therapeutics, Inc. (PSTI) PLX-PAD/CLICritical limb ischemia (CLI) is a devastating end-stage form of peripheral arterial disease (PAD)– a vascular disease caused by obstruction of large arteries in the lower extremities, resulting inprogressive reduction of blood flow to the extremities (feet, legs, and hands). The patient suffersskin ulcers and sores, as well as severe pain caused by ischemia, tissue loss, or ischemicneuropathy. The Sage Group (a research think tank) estimates that there are more than 2.8million CLI patients and as many as 18 million suffering from PAD in the United States, with anincidence that is growing with an aging population. The condition remains a highly unmetmedical need; up to 40% of the CLI population are characterized as “no-option” patients. Thisgroup is ineligible for further revascularization and may require amputation within the first year.Major amputation can increase the wound size, cause difficulty in wound healing (due to age),lead to the development of gangrene, increase mortality/morbidity, and much more, making it avery unattractive alternative.Exhibit 8. Dosing and AdministrationPluristem has demonstrated that local dosing for CLI offers significant advantages. The cells arebelieved to exert their effect and get cleared in a few weeks post-dosing.Source: PluristemExhibit 9. PLX Cell Migration and FateBelow is an example of biodistribution of PLX-PAD cells in Balb/C mice following intra-muscular (IM) and intra-venous (IV). 24 hrs post injection 3-4 days post injection 6 days post injection IM IV IM IV IM IVSource: PluristemPLX cells in this study were stably infected with a lentiviral construct expressing the luciferasegene under the CMV promoter. Two weeks post infection, 2x106 cells were injected into Balb/Cmice. Injected cells were monitored using the IVIS Lumina Imaging System. Results show thatPLX cells injected IM are retained only at the site of injection and persist for less than a week inBalb/C mice. Cells injected intravenously traveled to the lungs and returned to the site of injury.Maxim Group LLC 9

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Pluristem Therapeutics, Inc. (PSTI)Phase I safety and efficacy clinical trial results. Pluristem has conducted two Phase I studies,which began enrolling patients in the summer of 2009. The studies were designed to evaluate thesafety of PLX cells and included accessing the patient’s immunological profile before and afterthe local administration of the PLX cells. Efficacy parameters were assessed at five differentdoses. These studies were performed in parallel in Europe and the United States.Three-month follow-up data was reported for 21 patients across the two studies. The first groupin Germany consisted of 15 patients (10 males and 5 females, ages 40-80) undergoing threetherapeutic courses. The second group in the United States consisted of 6 all male patients (ages51-70) undergoing a single dose.The patients were all qualified as afflicted with CLI in two open-label, dose-escalation, Phase Istudies conducted at Duke University Medical Center, Stanford University Medical Center, theCenter for Therapeutic Angiogenesis in Birmingham, Alabama, and St. Franziskus Hospital,supported by the Charité - University Medicine Berlin.The results: safety endpoints  No significant unfavorable effects due to the administration of PLX cells were reported. One major amputation was reported in the PLX (PAD) high-dose group and was determined to be unrelated to the administration of PLX cells. This case represented 4.7% of all patients treated in this study and compares to historical data that indicates a 35-40% major amputation rate in CLI patients per year (but statistics in such a small study have little meaning). The study showed 85% Amputation Free Survival (AFS) after 12 month.  None of the patients developed an anti-HLA antibody response and no specific anti-PLX HLA class-I or class-II antibodies were detected in the patients tested. This indicates PLX-PAD cells are immune competent and can be given to the patient “off-the-shelf” without a need for matching.  Immunological profiles demonstrated a rise in anti-inflammatory and angiogenic protein secretion post-dosing, suggesting PLX-PAD cells function to deliver appropriate therapeutic proteins in response to the ischemic, inflammatory process of CLI.The results: efficacy parameters  Across all doses, 13 patients (62%) demonstrated an improvement in the ankle-brachial index (ABI), a measure of blood flow. Eleven patients receiving the intermediate dose demonstrated a statistically significant improvement from baseline (P=0.033).  Across all doses, 13 patients (62%) demonstrated an improvement in the Transcutaneous Oxygen Pressure (TcPO2), a measure of tissue oxygenation. This improvement was statistically significant in the European study where the distribution of injections was higher (P=0.05).  Across all doses, 17 patients (81%) demonstrated an improvement in ABI, TBI, or TcPO2.  Across all doses, 17 patients (81%) demonstrated a statistically significant improvement from baseline in the King’s College Score for Quality of Life (QoL) assessment (P< 0.001). Eleven patients receiving the intermediate doses demonstrated the best improvement from baseline in the QoL score (P< 0.001).  Across all doses, 15 patients (71%) demonstrated an improvement from baseline in the reduction of pain as measured by using the VAS. This improvement was statistically significant in the European study where the distribution of injections was higher (P=0.013).Maxim Group LLC 10

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Pluristem Therapeutics, Inc. (PSTI)Exhibit 12. ImmunodepressionPLX injection causes a transient-dose dependent immunodepression. There was noimmunosuppression in injected patients (immunoparalysis).Source: PluristemImmunological conclusions. The trials demonstrated that there were no PLX-PAD relatedserious adverse events. No patients developed an anti-HLA antibody response and no specificanti-PLX-HLA class-I or class-II antibodies were detected in the tested patients. There was noalloreactive T cell response to PLX cells. Evidence for systemic immunomodulation wasdemonstrated with transient reduction in the expression of HLA-DR/CD14+. There was no severeimmunosuppression in injected patients (immunoparalysis). In vivo data confirmed the in vitrodata.Exhibit 13. Angiogenic Growth Factors VEGF bFGF PlGF HGF IL-6Source: medicineworld.org/.../ angiogenesis-9421.jpgMaxim Group LLC 12

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Pluristem Therapeutics, Inc. (PSTI)Exhibit 14. Secretion of Angiogenic FactorsSecretion of VEGF by PLX under normoxia (green) and hypoxia: Different placenta-derivedadherent cells were cultured for 24 hours under normal or hypoxic conditions. Source: PluristemExhibit 15. HUVEC Proliferation and PlGF Secretion 70 ,000 500 60 ,000 HUVEC 50 ,000 HUVEC+ PLX 400No of Cells PlGF PlGF (pg/ml) 40 ,000 300 30 ,000 200 20 ,000 100 10 ,000 0 0 PLX HUVEC HUVEC+PLX HUVEC HUVEC+PLX HUVEC 10000 , HUVEC ,50000Source: PluristemWhat do the results mean? The results suggest that PLX cells are safe and show an efficacysignal. The trials pave the way for a larger Phase II proof-of-concept study. The company nowintends to pursue a larger study with both the U.S. Food and Drug Administration (FDA) andEuropean Medicines Agency (EMA). We know that active discussions are ongoing to determinethe optimal study design. We also see the potential for the company to design a Phase II studythat can be expanded to a registrational study. As such, Pluristem can try to close the gap on thecompetitive field with Aastrom (now in a pivotal trial in CLI).What kind of size and power is needed for the Phase II program? We know that the phase IItrial in IC will be in 132 patients. For CLI, we expect a larger trial that can be expanded to apivotal one. If the CLI study generates positive results, we would look for the expansion to aregistrational design (n=600) pivotal trial.Maxim Group LLC 13

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Pluristem Therapeutics, Inc. (PSTI)Exhibit 18.Other Possible Indications: The Field Could Be UnlimitedSource: PluristemExhibit 19. PLX’s Therapeutic EffectPLX’s therapeutic effect relates to the cell’s capability to respond to environmental signals withinthe patient’s body by secretion of different proteins. PLX cell do not engraft and graduallydisappear from the patient’s body within a few weeksSource: MaximOn June 19, 2011, Pluristem entered into an exclusive license agreement with UnitedTherapeutics for the use of its PLX cells to develop and commercialize a cell-based product forthe treatment of pulmonary hypertension (PAH). The license agreement provides that UnitedTherapeutics will receive exclusive worldwide license rights for the development andcommercialization of Pluristem’s PLX cell-based product to treat PAH.Maxim Group LLC 15

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Pluristem Therapeutics, Inc. (PSTI)The license agreement provides for the following consideration payable to Pluristem: (1) anupfront payment of $7M (paid in August 2011, which includes a $5M non-refundable upfrontpayment and $2M refundable advance payment on the development); (2) up to $37.5M uponreaching certain regulatory milestones with respect to the development of a product to treat PAH;(3) reimbursement of up to $10M of certain company expenses if the company establishes amanufacturing facility in North America upon meeting certain milestones; (4) reimbursement ofall costs in connection with the development of the product; and (5) following commercializationof the product, royalties and the purchase of commercial supplies of the developed product fromthe company at a specified margin over the company’s cost.Exhibit 20. PSTI-UTHR Economic CollaborationSource: PluristemExhibit 21. Case Study: Pluristem announced earlier this year that its PLX cells had saved thelife of a seven year-old girl suffering from aplastic bone marrow and who had undergone twofailed bone marrow transplants. With her condition rapidly deteriorating her doctors injectedPluristems PLX cells intramuscularly, following which the girl experienced a reversal of hercondition with a significant increase in her red blood cells, white blood cells and platelets.Source: PluristemMaxim Group LLC 16

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Pluristem Therapeutics, Inc. (PSTI)As a result of this experience, Pluristem announced that it is now preparing to apply to the U.S.Food and Drug Administration for approval of its PLacentaleXpanded (PLX) cells for thetreatment of aplastic bone marrow as an Orphan Drug. Gaining Orphan Drug status approval ispart of Pluristems strategy for penetrating the bone marrow recovery market, starting withtreatment of aplastic anemia, a disease in which bone marrow greatly decreases or stopsproduction of blood cells and strikes five to ten people in every million. Orphan Drug Status inthe U.S. helps the company to accelerate the path to full FDA approval. Pluristem is also planningto file for a similar designation in Europe and global territories.A note on Orphan status: Gaining Orphan Drug Status carries multiple potential benefits,including the possibility of an expedited regulatory process, availability of grant money, certaintax credits and seven years of market exclusivity. In August 2011, Pluristem successfully appliedfor, and received, Orphan Drug Status from the FDA for its PLX cell therapy in the treatment ofBuergers disease.Exhibit 22. Product Differentiation Message: It’s important for us to understand that Pluristemsees its PLX allogeneic cells as being able to be modified (based on various manufacturingcriteria) and, as such, translate into multiple products in multiple indications. The companypresents this in the graphic below.Source: PluristemMaxim Group LLC 17

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Pluristem Therapeutics, Inc. (PSTI)Mesoblast is highly valued versus the pack, likely a result of the Cephalon partnership deal. Notethat Cephalon has since been acquired by Teva Pharmaceuticals (TEVA, $40.49, NR). In 2010,Cephalon executed a partnership with Mesoblast, in which the company received $130 millionfrom Cephalon for certain therapy rights. In addition, Cephalon agreed to pay for all the clinicaltrials while Mesoblast retains the rights to manufacturing commercial supplies of the stem-cellproducts to be marketed by Cephalon.Osiris has a partnership with Genzyme, which has been acquired by Sanofi-Aventis. Under theterms of the original agreement, Genzyme made a $130 million up-front payment (two insequence). Osiris also had the potential to receive a total of up to $1.25 billion in milestonepayments from Genzyme. The status of the partnership is currently in dispute.We believe the stem cell space holds great potential and is highly undervalued, and that we couldsee valuations rise as some of the companies commercialize products over the next few years. Webelieve Pluristem could be one of the leaders. FUNDAMENTAL RISKSData risk. The outcome of current clinical trials in critical limb ischemia and other indicationscould fail to demonstrate efficacy or could show a safety (toxicity) risk, halting clinicaldevelopment.Developmental risk. Successfully managing multiple clinical trials is a risk. Trials can takelonger than expected to enroll. Trial costs often exceed budgets. Standards of care can change,rendering a great trial design obsolete.Regulatory risk. Pluristem must be able to obtain the approval of the FDA and other externalbodies (EMA) before commercial sales of the product candidates commence in the United States.Solid trial results are critical, but so is proper filing and interaction with the regulatory agenciessuch as the FDA, EMA, or Koseisho (Japan).Commercial risk. Pluristem has no commercial infrastructure and will need to develop one orpartner prior to commercialization.Competitive landscape. Pluristem is not alone its current indications in critical limb ischemia orPAD.IP risk. Pluristem has a strong patent portfolio but still faces many challenges from a wide rangeof competitors.Financing risk. Pluristem is not yet a profitable company. As such, it will need to raiseadditional capital or partner to complete clinical trials and commercialize its product portfolio.Maxim Group LLC 20